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Fourthquarter financial results in line with expectations
Fourth quarter net revenues $2.01 billion, up 3.9% year-over-year excluding ST-Ericsson
Positive free cash flow of $91 million in the fourth quarter*
GENEVA, Switzerland, Jan. 27, 2014 (GLOBE NEWSWIRE) --
a global semiconductor leader serving customers across the spectrum of electronics applications, reported financial results for the fourth quarter and full year ended December 31, 2013.
Fourth quarter net revenues totaled $2.01 billion, gross margin was 32.9%, and net loss was $0.04 per share. For the full year net revenues totaled $8.08 billion, gross margin was 32.3%, and net loss was $0.56 per share.
"Fourth quarter revenue and gross margin results were well in line with our outlook range, coming in at the mid-point of our guidance, which translated into positive operating income before impairment and restructuring and a substantial positive free cash flow," said ST President and CEO Carlo Bozotti.
"In 2013, we grew 3.2% excluding the former ST-Ericsson products, a better performance than our served market, with the main contributions coming from our microcontrollers and automotive products. We also made good progress on our customer diversification and mass market and distribution initiatives. In addition, our leading-edge set-top box products and FD-SOI-based ASICs led to important design wins and traction with major worldwide operators and OEM customers."We made solid progress in executing the strategy we announced in December 2012 but we still have much to accomplish. We completed the split up of ST-Ericsson in a timely manner and by adding some of their competencies we strengthened our product development teams. Furthermore, we brought our quarterly operating expenses down by about 25 percent compared to the year-ago quarter and our fourth quarter net operating expenses within our target range. We also started to make gradual structural changes to our manufacturing footprint which will benefit our gross margin and we announced a key frame agreement with the French government to support our R&D efforts for CMOS derivative technology."(*) Free cash flow is a non-U.S. GAAP measure. Please refer to Attachment A for additional information explaining why the Company believes this measure is important and for reconciliation to U.S. GAAP.Summary Financial Highlights
U.S. GAAP (Million US$)
Net Revenues (a)
Operating Income (Loss), as reported
Net Income (Loss) attributable to parent company
(a) Net revenues include sales recorded by ST-Ericsson as consolidated by ST. ST-Ericsson was deconsolidated on September 1, 2013
Non-U.S. GAAP* (Million US$)
Operating Income (Loss) before impairment and restructuring charges
Operating Margin before impairment and restructuring charges
Net Revenues excluding Wireless (WPS)
(b) FY2012 as reported includes a net charge of $54 million related to NXP arbitration awardFourth Quarter Review Overall, net revenues as reported increased 0.1% sequentially and decreased 6.8% on a year-over-year basis. On a sequential basis by region of shipment, Greater China & South Asia posted growth of 4.1%, while Japan & Korea, the Americas, and EMEA decreased by 5.6%, 2.8%, and 1.0%, respectively.
ST's fourth quarter revenues, excluding WPS (former ST-Ericsson products), grew 0.2% on a sequential basis and 3.9% year-over-year. Sequential growth was driven by Automotive and Microcontrollers while year-over-year growth was driven by Imaging, Automotive, Microcontrollers, and Industrial and Power.